Many of us have fond memories of hanging out in the mall.
As a younger teen without a license or car, it was perhaps the one place a parent could drop you off, knowing you’d be occupied for hours. And even if you didn’t have much money, you could window-shop to your heart’s content and maybe grab a cheap food-court snack and call it dinner.
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These days, though, malls don’t seem to have the allure they once did.
Maybe it’s because you can buy just about anything you want online, so there’s no need to leave your house, let alone navigate a giant structure filled with stores.
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But it’s clear that in recent years, malls have been dying out. And while we could blame the pandemic, during which time mall traffic certainly declined, the reality is that the mall apocalypse has been brewing for quite some time.
Not only are shoppers abandoning malls, but retailers have taken to doing the same. And if that trend continues, it could change the shopping landscape tremendously.
A popular fashion retail store closure leaves a huge mall in jeopardy.
Image source: Getty Images
Popular store closes, leaves giant mall in the lurch
Zara is one of those retailers that operates both inside of malls and as standalone stores. And there can be benefits and drawbacks to both.
The upside of being inside a mall is that shoppers might stumble upon your store in the course of visiting other retailers. The downside, of course, is the competition.
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Similarly, operating a standalone store means you don’t have throngs of retailers around you trying to take your business away. The downside, though, is that unless customers specifically drive over to your store, you’re not going to get them to buy anything.
Still, a number of retailers have been increasingly moving away from malls in recent years. And now, Zara is making its exit from the famous San Francisco Centre mall.
Unfortunately, the closure of Zara’s 28,000-square-foot store marks the loss of the mall’s largest remaining retailer. And the damage may not be over.
Other retailers, including Oak and Fort clothing and AG Jeans, are expected to abandon the mall in short order.
A huge blow for a struggling city
Losing Zara is apt to be painful for the San Francisco Centre mall, which has been bleeding major tenants in recent years.
In 2023, Nordstrom closed its San Francisco Centre location. And things have been going downhill since then.
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The closure of Zara is, sadly, part of a larger trend that’s been plaguing San Francisco.
In recent years, retailers and restaurants alike have been pulling out of the city for reasons that include an uptick in crime and a notable decline in foot traffic.
Though San Francisco was once a bustling commuter city, the introduction of remote work during the pandemic has changed its dynamic. With fewer people entering the city each day, it’s become harder for retailers to stay afloat.
Now the silver lining in all of this is that while Zara may be leaving the San Francisco Centre, it’s not ditching the city completely. The fashion giant announced plans earlier this year to open a new flagship store in the heart of Union Square.
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Meanwhile, the fate of the San Francisco Centre remains in limbo as the mall heads to a foreclosure auction. As of now, that’s scheduled to happen later in July. But because previous auction dates were postponed this year, it’s possible that July’s auction will be pushed out as well.